{"id":1609,"date":"2025-06-20T06:33:38","date_gmt":"2025-06-20T04:33:38","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/btw-op-vermogensbeheer-niet-aftrekbaar\/"},"modified":"2026-03-03T10:34:56","modified_gmt":"2026-03-03T09:34:56","slug":"vat-on-asset-management-not-deductible","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/btw-op-vermogensbeheer-niet-aftrekbaar\/","title":{"rendered":"VAT on asset management not deductible"},"content":{"rendered":"

Gelderland District Court<\/a> ruled that VAT paid by a BV to the bank for managing securities portfolios is not deductible.<\/p>\n\n\n\n

The facts of the case<\/h2>\n\n\n\n

The BV carries out consultancy work in the context of which it provides revenue in 2017 to 2020 of \u20ac336, \u20ac5,706, \u20ac7,424 and \u20ac2,422 respectively. The BV also provides loans to its director and family members of its director. In addition, the BV holds securities portfolios, managed for a fee by ING and Rabo, the size of which in 2017 to 2020 amounted to \u20ac1,386,404, \u20ac1,295,645, \u20ac1,578,721 and \u20ac669,196 respectively.<\/p>\n\n\n\n

The BV deducts as input tax all VAT it pays to ING and Rabo for managing the securities portfolios.<\/p>\n\n\n\n

As a result of an audit, the Tax Administration deducts this input VAT (plus tax interest, but apparently without penalty). In addition, the Inland Revenue is also deducting the VAT deducted by the BV on its overheads (this mainly concerns accountancy and office expenses) for 50%.<\/p>\n\n\n\n

The court's considerations<\/h2>\n\n\n\n

The Court ruled that the VAT on the management costs was rightly deducted in full by the Inland Revenue. In doing so, the Court considers, preceded by the observation that the burden of proof for the deduction of the VAT rests on the BV:<\/p>\n\n\n\n

    \n
  • that the BV has neither claimed nor shown that it deals in securities on a business basis;<\/li>\n\n\n\n
  • nor that the BV intervenes (in)directly and for a fee in the companies in which it invests;<\/li>\n\n\n\n
  • the claim that the BV holds the securities portfolios for its advisory services and for (future) participations or guarantees, it has not substantiated with any objective data;<\/li>\n\n\n\n
  • and therefore the BV does not make a plausible case that the securities portfolios are a direct, sustainable and necessary extension of its (future business).<\/li>\n<\/ul>\n\n\n\n

    If so, the securities portfolios qualify as a non-economic activity, so the VAT attributable to them is not deductible. This is only different if the management costs are part of the BV's general costs. The court considered that this requires the management costs to be included in the advisory services provided by the BV taxed with VAT. As the management costs are considerably higher than the turnover for advisory services, the court did not consider this to be plausible.<\/p>\n\n\n\n

    The court also upheld 50%'s after-tax deduction of VAT on general costs. The BV's claim that the auditor's report should have been drawn up even without the securities portfolios was refuted by the court on the grounds that the auditor also had to perform work on the securities portfolios. The ruling does not reveal how the percentage of 50 was arrived at, but it does contain the inspector's comment that his calculations show that this percentage is in any case not to the disadvantage of the BV, which does not seem very illogical in view of the limited turnover in advice compared to the size of the securities portfolios.<\/p>\n\n\n\n

    Conclusion<\/h2>\n\n\n\n

    It is not impossible for VAT-registered entrepreneurs, who (also) perform VAT-taxed services, to (partially) deduct the VAT charged on the costs of managing investment portfolios. But the concrete circumstances must be such that it can be substantiated that the portfolios are (in)directly held in connection with the VAT-taxed activities of the entrepreneur.<\/p>","protected":false},"excerpt":{"rendered":"

    Rechtbank Gelderland heeft beslist dat de BTW die een BV betaalt aan de bank voor het beheer van effectenportefeuilles niet aftrekbaar is. De feiten van deze zaak De BV verricht advieswerkzaamheden in het kader waarvan zij in 2017 tot en met 2020 omzet respectievelijk: \u20ac 336, \u20ac 5.706, \u20ac 7.424 en \u20ac 2.422. Ook verstrekt […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1609","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=1609"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1609\/revisions"}],"predecessor-version":[{"id":3621,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1609\/revisions\/3621"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=1609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=1609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=1609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}